What Small Business Owners Should Know About Filing of Annual Tax Return of Your Company

Filing annual tax return is a legal requirement for all limited liability companies, whether public or private, whether resident or non-resident. This is an obligatory exercise which every director of the company should ensure are carried out.

Every company is expected to prepare an audited annual financial statement at the cycle of twelve (12) months which is an accounting year.

The audited account is expected to be filed with other documents (as stated later in the article) with Federal Inland Revenue Service Office to which your company is registered.

An annual tax return is used to declare all income earned and expenses incurred during an accounting year.

Completing an annual tax return is a task millions of taxpayers dread at this time of the year.

Section 52(2) of CITA 2007(as amended) states that the due date for filing of your tax returns is six (6) months after your accounting year end.

If your company accounting year ends in;

December: the deadline for filing your company annual tax returns is June of the following year.

January: the deadline for filing your company annual tax returns is July of the same year.

February: the deadline for filing your company annual tax returns is August of the same year.

March: the deadline for filing your company annual tax returns is September of the same year

April: the deadline for filing your company annual tax returns is October of the same year

May: the deadline for filing your company annual tax returns is November of the same year.

June: the deadline for filing your company annual tax returns is December of the same year.

July: the deadline for filing your company annual tax returns is January of the following year.

August: the deadline for filing your company annual tax returns is February of the following year.

September: the deadline for filing your company annual tax returns is March of the following year.

October: the deadline for filing your company annual tax returns is April of the following year.

November: the deadline for filing your company annual tax returns is May of the following year.

Filing of your company annual tax return is done under Regulation 3(1) of the Self-Assessment Regulations 2011 which requires the tax payer to compute his tax liability, pay the tax due and produce evidence of the tax paid at the time of filing his tax returns at the tax office

· Audited Accounts of statement of affairs duly signed by two directors and the designated external auditors who should be members of ICAN or ANAN in public practice and have therein impressed the seal and official stamp of the Principal Partner

As a director of a limited company, you therefore need to make sure that your company corporation tax liability is accurate, your annual tax return is filed on time and that you pay the corporation tax to Federal Inland Revenue Service (FIRS) when it falls due.

Whether you file a tax return by the due date, or obtain an extension to file, filing an annual tax return is mandatory

Filing your company tax return by due date and paying all outstanding tax due will entitle you to collect your Tax Clearance Certificate.

When it comes to minimizing your tax bill, your annual tax return is just a short-term tactic. This is because failure to file annual tax return will result in the payment of the outstanding tax due, penalty and interest. The company will also not be entitled to Tax Clearance Certificate which can open door for opportunities in the business environment.

In our firm we will help you in filing your Tax Return and other business taxes, filing your return is very important and using the right company to file your annual tax return is a very important decision.

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